Key Facts:
- The Nature Conservation Council NSW is urging the NSW Independent Planning Commission to reject Yancoal’s proposed expansion of the Moolarben Coal Complex near Mudgee, which would clear 480 hectares of habitat, including critical koala habitat, and release an additional 64.6 million tonnes of carbon pollution over its lifespan.
- The expansion would threaten 23 threatened species, including koalas, squirrel gliders, and regent honeyeaters, and would operate as close as 100 metres from the Munghorn Gap Nature Reserve, one of the oldest nature reserves in NSW.
- The project also risks damaging Aboriginal cultural heritage, threatening local water resources, and causing groundwater drawdown of up to five metres affecting ecosystems along nearby creeks.
- A recent High Court ruling determined that companies must consider measures to reduce climate pollution from coal combustion, which advocates argue supports halting coal mine expansions in favour of transitioning to renewable energy.
- A public hearing regarding the proposed expansion will be held at Mudgee Showground on 2 and 3 December 2026.
The state’s leading environmental advocacy organisation is calling on the NSW Independent Planning Commission (IPC) to reject a proposed coal mine expansion near Mudgee that, if approved, would clear 480 hectares of high-value habitat and exacerbate climate pollution.
Nature Conservation Council NSW (NCC) says approving the Moolarben Coal Complex OC3 Extension proposal would be unjustified considering its impacts on the local environment, including critical koala habitat, and its contribution to global climate change. The project would decimate habitat of 23 threatened species, destroy Aboriginal cultural heritage, threaten water resources, and release an additional 64.6 million tonnes of climate pollution over its lifespan into the already overheated atmosphere.
Quotes attributed to NCC CEO, Jacqui Mumford: “The Moolarben open cut coal mine is already the largest coal producer in the state and is approved to keep polluting until 2038. “The proposed mine expansion is surrounded on three sides by Munghorn Gap Nature Reserve – one of the oldest nature reserves in NSW and home to 23 threatened species including a breeding koala colony.
“Despite this, the coal mining company, Yancoal, wants to wipe out a further 480 hectares of habitat to dig for more coal.
“The proposed open cut extension would happen 100-metres from the Munghorn Gap Nature Reserve, risking the survival of the vulnerable wildlife and threatening water supporting the nearby springs.
“The project would also create additional emissions, turbocharging the impacts of climate change we’re already experiencing.
“Yancoal hopes its promise to put aside additional land for wildlife compensates, but let’s be clear: the area of habitat to be set aside was never going to be cleared anyway. There’s no formal protection; it’s meaningless lines on a map.
“As well as koalas, the squirrel glider, regent honeyeater, large eared pied-bat, and broad headed snake are among the species at risk if the project is approved. “Recently, Australia’s High Court ruled that companies must propose measures to reduce climate pollution from coal, including from combustion. The best way to do this is to ramp down coal production, invest in renewable energy, and plan a future for workforce beyond coal.
“To meet its legislated emission targets and deal with the intensifying climate crisis, NSW needs to focus on renewable energy and stop expanding and extending the lives of polluting coal mines.” Quotes attributed to Mudgee District Environment Group President, Rosemary Hadaway: “It is critical that the Commissioners consider the cumulative impact of the Mudgee Region coal mines, three of the largest in NSW.
“The cumulative loss of biodiversity, water, Aboriginal cultural heritage and landscape, while increasing climate heating greenhouse gas emissions has had a significant impact that must be taken into account.”
